GMR commissions 350 MW unit

GMR Energy Ltd, a subsidiary of 2.6 billion dollar diversified GMR Group, has started power generation at its thermal power plant in Dhenkanal district. The company has commissioned the first unit of its proposed 3X350 MW power project and synchronised it with the central grid network.

“Work on commissioning the second and third unit is also in progress,” the company said in a press release without elaborating the definite time period for completion of the project.

This is the Group’s second coal-based power plant, after its Vemagiri power project in Andhra Pradesh, to be synchronized. The Odisha project has been implemented on multiple packages concept and is the third Independent Power Project (IPP) in the state to have started generation after Sterlite Energy and Arati Power.

The company had signed an agreement with the government of Odisha in June 2006 to establish the power project. As per the agreement, the company has to sell at least 12 per of total power generation to the state grid at variable cost, which is linked to coal prices.

The company has been allocated Rampia coal block jointly with Lanco Group Ltd, Sterlite Energy Ltd, ArcelorMittal India Ltd, Reliance Infrastructure Ltd and Navabharat Power Ltd.

However, the block is yet to be excavated. Apart from supplying power to the state grid, the company can sell power outsside the state through open access system.